STAAR Volume 3 - St. Anne's MCR
STAAR Volume 3 - St. Anne's MCR
STAAR Volume 3 - St. Anne's MCR
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<strong>STAAR</strong>|Vol 3|Munish Sikka|2011<br />
their own natural assets, thereby increasing their self-sufficiency and reducing the government’s<br />
trust responsibility (Thornton, 2007).<br />
The Sealaska Corporation is one of the regional corporations formed under ANCSA and is<br />
involved in the land and natural resource management in SE Alaska (Sealaska - Who We Are,<br />
2011). Sealaska recently installed a wood-pellet based heating system in their office building in<br />
Juneau as a potential step in biomass energy development. The Corporation is further taking<br />
steps to develop a regional industry for wood-pellets including through:<br />
Spreading awareness amongst the native community members and policy makers,<br />
regarding the benefits of switching from oil to wood-pellets to heat buildings; and<br />
Capacity building of existing saw-mills to start a wood-pellet production facility.<br />
Developing a biomass-energy industry in the region that produces wood-pellets to be<br />
consumed as heating fuel is expected to benefit the region in several ways. These wood-pellets<br />
could be made from current saw-mill and logging residues in SE Alaska and does not require any<br />
new tree to be harvested particularly for biomass-energy.<br />
The fact that residues often have low or even negative costs and therefore could be utilised for<br />
development of biomass-energy is also supported by Rosillo-Calle et al.(2007,pp.6-7). These<br />
authors suggest that residues from forestry and agricultural activities are a large and<br />
underexploited potential energy resource, almost always under-estimated and represent many<br />
opportunities for better utilisation. Globally the energy potential available from residues is about<br />
70 Exa Joules 9 (EJ) including 36 EJ from forestry residues alone. However, these estimates are<br />
regarded as rough indications only with considerable variation estimated.<br />
The present study attempts to identify potential economic, environmental and social benefits<br />
of establishing a wood-pellet industry in the region. These three types of benefits together<br />
constitute the Triple Bottom Line framework of sustainability (Slaper & Hall, 2011). In order to<br />
demonstrate the environmental benefits, the study uses the emission factor values published by<br />
Obernberger & Thek (2010,p.305) to calculate the potential savings in Carbon Dioxide (CO2)<br />
emissions that could be achieved by displacing oil with wood-pellets as heating fuel in residential<br />
and commercial buildings. The study further examines a potential demand-supply scenario using<br />
the available literature and conducts the price sensitivity analysis of wood-pellet and oil. This<br />
sensitivity analysis is based on a methodology developed by Brackley, Barber, & Pinkel<br />
(2010,p.19) where the price per unit of energy is determined at different prices of oil and woodpellets.<br />
Methods<br />
The current study is based on an in-depth literature review, participant observation and<br />
semi-structured interviews with key informants on the existing energy situation and trends in the<br />
forest industry in Southeast Alaska. Semi-structured interviews are composed of predetermined<br />
questions, but the order and content of the questions can be modified based upon the<br />
9 1 EJ = 10 18 Joules